CDA Announces $255 Million in Hurricane Ike Bond Allocation

09-Aug-2010

FRISCO, TEXAS – August 9, 2010

Community Development Associates (“CDA”), a Dallas-area financial advisory firm specializing in tax-exempt and tax-credit financing, announced today that it has secured $255 million in Qualified Hurricane Ike Disaster Area Bond program allocation for two of its clients.

The Tax Extenders and Alternative Minimum Tax Relief Act passed by Congress in 2008 authorized a new type of tax-exempt private activity bond targeted to areas of Texas and Louisiana affected by Hurricane Ike. In November 2008, the Internal Revenue Service authorized $1,863,270,000 that could be issued in qualifying Texas counties. Successful applicants in the first round of allocation were notified last week, with $919 million awarded to seven total projects.

CDA was the financial advisor to two of the projects, which received a total of $255 million in allocation.

Commenting on the Ike bond allocation, CDA President Lee McCormick stated, “The timing of Hurricane Ike in September 2008 couldn’t have been worse. The recession was a one-two punch to companies with properties or trade harmed by the storm. Hurricane Ike bonds will help return stability to the affected region, while creating jobs and boosting local economies.”

Applications are now being accepted for the remaining amount of the allocation, which is approximately $881 million.